At 30.1% the black African population has the highest unemployment and lowest absorption rate in South Africa. The following analysis tells us the characteristics of these unfortunate parts of our population who are liable to be at the end of the queue for employment.
Improving their characteristics may improve their place in the queue, but it will not necessarily reduce unemployment. In the African group – the group that suffers such catastrophically high unemployment rates – human capital characteristics such as education and employment experience dramatically reduce the chances of unemployment. However, a skills upgraded may not solve the problem: unless there are more jobs in the economy, upgrading the education of Africans will at best change the composition of employment in their favour.
In SSA’s engagement with small enterprises in townships, it was evident that apart from funding they required technical enterprise support, accredited products and someone to oversee and guide them in their quest to access markets with quality services and products, in order to assure long term sustainability. This mechanism will increase the skill for which there is a market, and decrease the supply of unskilled labor.
SSA believe it is possible through the expanding of business acumen, skills, funding and mentor opportunities that together these aspects will reduce overall unemployment and open a new market to individuals in the lower end of the job market.
Unemployment rate (%), by age, education, gender, region, and race
|Race||Broad definition||Narrow definition||Broad-narrow gap|
Source: October Household Survey, 1994.